ISLAMABAD: The Competition Commission of Pakistan (CCP) has approved a 40 percent equity stake acquisition in Gas & Oil Pakistan Ltd (GO) by Aramco, a global leader in integrated energy and chemicals.
This transaction marks Aramco’s first entry into Pakistan’s fuels retail market, underscoring its confidence in the country’s economic potential and its commitment to its growth. Aramco Asia Singapore Pte. Ltd., a Singaporean company wholly owned by Saudi Aramco, filed the pre-merger application with the CCP. The company specializes in sales, marketing, procurement, logistics and related services, with a focus on prospecting, exploring, drilling, extracting, processing, manufacturing, refining and marketing hydrocarbon substances.
GO, the target Pakistani company, is a licensed oil marketing company operating in Pakistan. It is involved in the procurement, storage, sale, and marketing of petroleum products and lubricants. GO is also a prominent operator of downstream fuels, lubricants and convenience stores, making it one of Pakistan’s largest retail and storage companies.
The CCP’s merger analysis determined that the acquisition would not result in the acquirers’ dominance in the relevant market post-transaction, leading to authorization of the merger. This decision aligns with CCP’s mission to foster competition and ensure a fair business environment in Pakistan.
Aramco’s acquisition indicates a significant milestone in Pakistan’s energy sector, bringing advanced expertise and technology to the fuels retail market. This development is expected to boost competition, elevate service standards and provide consumers with a broader range of high-quality products.
The acquisition will bring in the much-needed foreign direct investment in Pakistan’s energy sector, contributing to economic growth and development.
The acquisition will help in advancing the company’s strategy to strengthen its downstream value chain internationally. This transaction would enable Aramco to secure additional outlets for its refined products and further provide new market opportunities for Valvoline-branded lubricants, following Aramco’s acquisition of the Valvoline Inc. global products business in February 2023.
Mohammed Y. Al Qahtani, Aramco Downstream President, said in a statement in December last year: “Our second planned retail acquisition this year aligns with Aramco’s downstream expansion strategy, with a clear path ahead for growing an integrated refining, marketing, lubricants, trading and chemicals portfolio worldwide. GO has a significant storage capacity, high-quality assets and growth potential, which will help launch the Aramco brand in Pakistan.”
